The Nigerian Electrical energy Regulatory Fee (NERC) has unbundled the Transmission Firm of Nigeria (TCN) by establishing the Nigerian Unbiased System Operator of Nigeria Restricted (NISO).
NERC made this identified in an Order dated April 30, 2023 and signed by NERC chairman, Sanusi Garba and vice chairman, Musiliu Oseni.
NERC, additionally ordered the Bureau of Public Enterprises, (BPE), to inside 30 days register the Unbiased System Operator as a definite entity from the Transmission Firm of Nigeria, with the Company Affairs Fee.
The Nigerian Unbiased System Operator Restricted will probably be answerable for managing the nationwide grid and different system operations associated market contracts and transactions.
TCN as a successor firm of the defunct Energy Holding Firm of Nigeria, PHCN, was issued with two licences by NERC as a Transmission Service Supplier and Unbiased System Operator.
The order formally unbundles the TCN into Transmission Service Supplier, TSP and Unbiased System Operator, as prescribed within the Electrical energy Act 2023.
The Fee’s motion is seen as a response to the frequent nationwide grid collapses which have seen 4 nationwide blackouts this 12 months.
The Fee ordered BPE to “incorporate, no later than 31 Could 2024, a personal firm restricted by shares underneath the Corporations and Allied Issues Act to hold out the market and system operation features stipulated within the EA and the phrases and situations of the system operation licence issued to TCN.
“The title of the corporate shall, topic to availability at Company Affairs Fee, be the Nigerian Unbiased System Operator of Nigeria Restricted (“NISO”). ii. The item clause of the Memorandum of Affiliation of the NISO as offered in part 1 6(2) of EA shall be as follows a. to carry and handle all property and liabilities pertaining to market and system operation on behalf of market individuals and client teams or such stakeholders because the Fee could specify; b. to hold out all market and system operation-related contractual rights and obligations novated to it by the Transmission Firm of Nigeria;
“c. to barter and enter into contract for the procurement of ancillary companies with impartial energy producers, successor technology licensees, and so on and customarily carryout market and system operations features as specified underneath the EA and the phrases of its licence within the curiosity of market individuals and system customers; d. to hold out all market and system operation-related contractual rights and obligations novated to it by the Transmission Firm of Nigeria; the earnings and property transferred to it by the TCN or whensoever derived shall be utilized solely in direction of the promotion of its objects as set forth in its incorporation paperwork and no portion thereof shall be paid or transferred straight or not directly by means of dividend, or bonus in any other case howsoever, by means of revenue to the subscribers: offered that nothing herein contained shall stop the cost in good religion of remuneration to any contractor or employees of the corporate in return for any companies rendered to the Firm”.
The Fee mentioned the NISO’s preliminary subscribers shall be the Bureau of Public Enterprises and Ministry of Finance Integrated (MOFI) whereas the ultimate shareholding construction of NISO shall be decided after additional consultations with authorities, market individuals and business stakeholders.